Things to be noted by NRIs:
NRIs are considered resident if their stay in India in all visits during an year exceeds 120 days. this limit was earlier 182 which is reduced to 120 now. This means NRIs need to plan their visits to India to restrict their stay to 120 days to avoid being subject to resident taxation.
If an NRI working abroad is not subject to tax in other country by any reason (i.e., domicile, residence etc,) he shall be considered as resident for taxation in India. This has impact on tax on per-diems paid to onsite employees working in No personal tax countries like UAE.
Tax impact on noted investments
Dividends from equity shares or mutual funds have been exempted so far. This exemption has now been removed. Its time to think if its wise to invest in Mutual funds and equity considering the new tax rules.
Employers contribution to EPF,NPS and superannuation all together if it exceeds INR 7,50,000 the excess shall be taxable in the hands of employee. Even the interest accrued on such excess contributed shall be taxable. So far there is no such limit of employers contribution to EPF and NPS. Hence, high paid employees need to check the limit before opting for any employer’s contribution to these funds.
Small and medium scale businesses
If cash transactions does not exceed 5% of total transactions (receipts / expenses) that audit is not required upto a turnover of 5 crore INR. This is a big relief from audit compliance for small and medium enterprises who encourage cash less transactions.
For change in the tax rates kindly refer our post https://taxvedika.com/2020/02/01/key-personal-taxation-updates-from-union-budget-2020/